After relegation, Leicester City are currently fighting for direct promotion. But now the Foxes are facing trouble. Both the Premier League and the Championship are investigating the club for breaching the Profit and Sustainability Regulations (PSR) – and there is even a threat of a points deduction
In 2016, Leicester were at the top of the table when the Foxes sensationally won the championship. They went on to win the FA Cup in 2021 before things went downhill – both in sporting and financial terms: the club from the East Midlands slipped into the red, especially in the recent past, and to make matters worse, they were relegated last season.
However, the Foxes are currently fighting for direct promotion back to the Championship and are well in the running. With eight matchdays to go, Leicester are level on 82 points with league leaders Leeds United – the Foxes were 13 points ahead before Boxing Day – and even have a game in hand. Surprisingly strong promoted side Ipswich Town are hot on the duo’s heels, however, with just one point less.
But now the Premier League has come around the corner and announced on Thursday that Leicester have been accused of failing to comply with the spending rules over the last three seasons, according to which a club may not accumulate losses of more than 105 million pounds. An investigation has been initiated. The league has now announced that it will have the case investigated by an independent commission, while the EFL Championship is also investigating the current season – much to the displeasure of Leicester City.
Leicester want to fight back – and have not yet published their figures
The second division club reacted with pique, writing that they were “extremely disappointed with the timing of the charge” and emphasized that they would fight back – and “against any unlawful actions by the league when it exceeds its jurisdiction”.
Leicester have not yet published their figures for the 2022/23 season, but have already confirmed a huge loss of £92.5 million for the 2021/22 season – with such a sum, the margin is very tight. Experts also expect the Foxes’ annual report for the relegation season to be heavily in the red. There will be clarity on this at the end of March.
If the accusation of a breach of the financial rules is substantiated, Leicester could face severe penalties. Everton FC and Nottingham Forest have had points deducted in similar cases. However, should Leicester also have points deducted by the Premier League, this would most likely not apply to the current season, but only in the event of promotion – after all, the Premier League has no power in the Championship. The situation in this case is not entirely clear, especially as the EFL is also investigating and can impose its own penalties. English media also report that if Leicester do not achieve direct promotion, the EFL would then enforce any penalty imposed by the Premier League in the lower house
